Case Law Analysis
|Income Tax Appellate Tribunal
DTAA Overrides Domestic Tax Law | ITAT Mumbai Rules Software Supply Not Royalty, No AOP in Consortium Contracts
ITAT Mumbai held that payments for offshore software supply do not constitute 'royalty' under the India-Germany DTAA, shielding foreign entities from Indian tax liability. The tribunal also ruled that consortium contracts between foreign companies do not form an 'Association of Persons' (AOP), ensuring taxation on a receipt basis per treaty provisions rather than aggregate income.